Stock futures continue to rise after bullish rally

A change in the Fed’s tone about interest rates and inflation brought a rally in the stock market yesterday. Traders now priced in a rate cut next year which signals a shift to the new bullish trend. Under the current situation, it is buying whenever a bearish correction happens and keeps buying unless a major policy change happens.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index shot to the upside after the recent FOMC interest-rate announcement. The index moves upward disregarding all of the bearish views and prints a new higher swing high. There is no bearish sign which means no change for traders to add long positions at a lower level for now. Nevertheless, there is no change to the strategy traders could apply, just wait for a bearish pullback to enter long positions in stocks.

Dell Technologies (DELL)

DELL share prices move lower and trade below the daily SMA 50. The share prices might continue the bearish movement to test the bullish trendline. Traders will wait near the trendline for bullish reactions. When there are bullish reactions, traders could add long positions.